SINGAPORE: Oil prices fell on Tuesday, erasing most of the previous session’s gains, after Iran and Israel said they had halted attacks on each other following an appeal from US President Donald Trump, though both sides warned they could resume hostilities.
Brent crude futures were down $1.14, or 1.2 percent, at $93.11 a barrel at 09:30 a.m. Saudi time, while US West Texas Intermediate declined $1.3, or 1.4 percent, at $90 a barrel.
Prices climbed as much as 5 percent in the previous session after renewed Israeli strikes on Iran and attacks in Lebanon reduced hopes of an imminent end to the wider war, but pared gains after Iran’s armed forces announced the end of military operations against Israel.
“While there is some relief from the latest pause in direct strikes, investors are not convinced the truce will hold,” said Tim Waterer, chief market analyst at KCM Trade.
Iran and Israel said they had halted attacks on each other after an appeal from President Trump that they immediately “stop ‘shooting’,” though Tehran said it would resume strikes if Israel continued to hit Hezbollah in Lebanon.
